Fool Portfolio Report
Tuesday, December 26, 1995
It seems only fitting that The Fool limped across the finish line third today, greeted by jeering investors in the loser's triangle. Heck, hand us an egg and we'll bounce it off our heads as well. Just as The Gap was falling $1 7/8 to $41 1/4, Ride Inc. shredded ahead $3 3/8 to $34 7/8. Fools all will remember that Da Gap was trading above $50 a month ago, just as we cashed RIDE at $21 1/8. Give us an egg, hand us that cherry tomato, could I borrow that nerf billyclub. . . there's a wooden equine knee that's earned a beating.
The Fool trudged ahead 0.22%, a blink of the eye behind the S&P 500, up 0.38% on the day. But, oh, what might have been! We will, however, celebrate Iomega, the stock that our readers brought to us last May. IOMG rose $2 3/4 to a bid of $47 1/8. IOMG is now up 211% for us. . . and readers wondering what we think of its pricing here should know that the word "underpriced" jumps to mind every time we see those four letters: I O M G.
But does this mean we think it's a good idea to trade options? To margin up fully to own it? To make the stock more than a 15%-position at entry? Quite the contrary. Ten stocks a portfolio, all generally equally weighted at the outset, a load of Dow stocks, a dollop of Foolishness. The aim is long-term profit, sleepability, and minimal opportunity costs.
And now to the beginning of the Year-End Review!
The first stop on this week-long tour through The Fool in 1995 takes us to the most recent addition to our forum: The Industry Research Area (keyword: sector). At this point, Fools will note that by year-end review and year-forward projections, we don't really think it's a good idea to focus on WHITHER GOES THE MARKET IN 1996? HOT TIPS FOR THE NEW YEAR! GREAT GOLD PLAYS ON THE VANCOUVER EXCHANGE HEADING INTO THE MILLENIUM! Et al.
Instead, we like to look at reasons to remain fully-invested in the US stock market. . . reasons like: better research tools, heightened collaboration, new investment models, and the like.
What better place to start than Industry Research---a review that is as much a preview as anything.
In the New Year, you will see this research garden grow in Fooldom. Hard as it is to think of florals with ice frozen to your brow, think bulbs blossoming, rhodendron globes whirling, lilac orchids, a sea of narcissus---the Fool's favorite Greek youth. Picture a garden bursting with color amidst an ocean of meadows teeming with wildflowers, and you'll have some sense of what the Industry Research site will look like come springtime.
We have just short of twenty-five industry experts sitting out in the industry message folders, waiting for your questions about stocks in your portfolio, stocks you're thinking about purchasing, companies you work for, conferences you plan to attend. David wrote an excellent description here in the portfolio report of who these people are and why we have a phenomenal opportunity to build the very best research for individuals anywhere on da planet.
I'll just run through a few brief highlights, and then let you do your own perusing. To get to the industry research, you can either link in via our mainscreen listbox, or you can go to keyword: sector.
Here are some brief highlights:
Earlier this month, Mark (MF Uptrend) sat on a Kaiser Foundatin panel in New York that included the CEO of Oxford Health Plans, Senator Howard Metzenbaum, and a pair of top-notch Wall Street analysts. What Mark brings to the table in Fool garb---among other things---is life inside of the industry, a love of the industry, a unique perspective, financial training, and no conflict of interest.
Holly (MF Wings) just won an award from Institutional Investor for creating one of the Best Annual Reports for 1995. Wings worked with AMR Corporation (holding company for America Airlines). She has put together an awesome research area for those of you looking at airlines for investing. Expect some big names to be dropping by as well.
The biotechnology group is in takeoff mode right now; if you have biotech stocks in your portfolio, and they aren't getting tossed out every time the next Phase I rolls by, then you're probably pretty pleased. Nick (MF Cyto) has assembled a list of Investing Rules for Biotech investors, as well as a collection of research resources, along with a series of his own research reports.
MF Joule has created what must certainly be the most comprehensive coverage of the world of utilities anywhere for the individual investor. From graphs, to quizzes, to a portfolio, to research reports on individual companies. . . you won't leave this spot without knowing a lot more about your heating bill.
MF Edible (Aristotle) has written a series of articles on food and restaurants that hurts our eyes to read: it's that Foolish. Edible has been instrumental in researching Rainforest Cafe, which has risen rapidly since its offering. If you're thinking of investing in restaurants, or want to share a few jokes about Planet Hollywood, Edible's your man.
MF Master (Joe) has thrown together earnings reports and weekly performance records on the group of paper and forest products stocks. You name the company, Master will help walk you through the cycle. And remember, International Paper is one of the Beating the Dow stocks now.
MF Rigs (Hank) will teach you everything you want to know about the oilfield services and oil drillers, and he's put together a portfolio for you to follow. If you have questions about the oil stocks---a group he is bullish on in 1996---stop by the site and drop him a note in his message folder.
There is too much to talk about, and I don't want to write a novella in today's port report. We think we've pulled together an unbelievable group of people to help you with your investments: no conflicts of interest, no lack of accountability, no one-way communication. We're aiming for nothing less than to be the superior, low-cost provider of financial information and analysis in this galaxy. If there are things you'd like to see us offer in that site, drop us a note in our suggestion box, and we'll work double-time to get them up there.
Fool on, and enjoy the end of Boxing Day.
Tomorrow's year end feature: huibs pht. :)
Tom Gardner, December 26, 1995
AMER - 5/8 AMAT + 1/2 CHV + 3/8 GE + 7/8 GPS -1 7/8 IOMG +2 3/4 KLAC - 1/4 S - 7/8
Day Month Year History FOOL +0.22% -1.98% 68.85% 87.48% S&P 500 +0.38% 1.48% 33.76% 34.01% NASDAQ +0.24% -0.93% 39.55% 45.71% Rec'd # Security In At Now Change 8/5/94 680 AmOnline 7.27 37.75 419.05% 5/17/95 335 Iomega Corp 15.11 47.13 211.80% 8/5/94 165 Sears 28.93 38.50 33.10% 4/20/95 155 The Gap 32.55 41.25 26.73% 8/11/95 95 GenElec 57.91 72.13 24.54% 8/11/95 110 Chevron 49.00 52.25 6.63% 8/24/95 100 AppldMatl 57.52 42.50 -26.12% 8/24/95 130 KLA Instrm 44.71 28.50 -36.26% Rec'd # Security Cost Value Change 8/5/94 680 AmOnline 4945.56 25670.00 $20724.44 5/17/95 335 Iomega Corp 5063.13 15786.88 $10723.75 8/5/94 165 Sears 4772.65 6352.50 $1579.85 8/11/95 95 GenElec 5501.87 6851.88 $1350.01 4/20/95 155 The Gap 5045.25 6393.75 $1348.50 8/11/95 110 Chevron 5389.99 5747.50 $357.51 8/24/95 100 AppldMatl 5752.49 4250.00 -$1502.49 8/24/95130 KLA Instrm 5812.49 3705.00 -$2107.49 CASH $18981.96 TOTAL $93739.46